LONDON, England – From April 2020 electric vehicles will be become cheaper to own and run than petrol or diesel cars thanks to a deal in the UK called ”salary sacrifice”. Sound too governmental to be true? Read on…
The state assistance could see a buyer save as much as £320 (about R6000) a month in income tax, ‘Benefit in Kind”, and National Insurance (state medical aid) payments by leasing a new battery-powered electric vehicle. Amazingly, though, it’s claimed about 90% of British road-users are unaware of available financial benefits.
Range anxiety and scarce charge points, The Corner was told, are no longer considered main barriers to widespread adoption of ”electric” though three out of five drivers canvassed said they would ”go electric” if the vehicles were cheaper.
So, what’s the plan…? The key to mass use of electric vehicles is said to be ”salary sacrifice schemes”.
Most Brits – among them thousands of nurses, doctors, council workers, and bank employees, are unaware that they could save thousands of pounds in tax, medical aid, and retirement insurance if they switch from fossil fuel to Joule and drive a new battery electric vehicle without a deposit, maintenance, or even insurance.
Surprisingly, perhaps, seven out of 10 drivers surveyed were aware of the British ”Cycle to Work” scheme (buy a new bicycle, deduct the cost from income tax. Fewer than one in 10 were aware that they could do the same to buy an electric car.
In 2016 the UK introduced legislation which ensured ”salary sacrifice” would be one of the most affordable ways to drive ultra-low emission vehicles (ULEV) and electric vehicles (EV). It ensured that both would continue to be the most cost-effective with tax exemptions.
‘SIGNIFICANT EMISSION REDUCTIONS’
Paul Gilshan, CEO of ”salary sacrifice” facility provider Tusker, said: “For too long a lot of people have felt priced out of the EV revolution – as we found from our survey, Most though such cars were only for those covered short distances – or earned a high income.
“Put simply, salary sacrifice is key to making battery electric vehicles affordable for the average person in the UK and key to the UK significantly reducing emissions of transport.”
- The news comes a week after results from an AA survey that suggested to government ministers that VAT should be scrapped on electric vehicles to boost sales.